Combined

The flood of new natural gas supplies from U.S. shale exploration combined with stagnant demand due to the current U.S. economic woes lead natural gas prices to decline across the country by 38-49% from the first six months of 2011 to the first six months of 2012, according to research done by the Energy Information Administration (EIA).

The flood of new natural gas supplies from U.S. shale exploration combined with stagnant demand due to the current U.S. economic woes lead natural gas prices to decline across the country by 38-49% from the first six months of 2011 to the first six months of 2012, according to research done by the Energy Information Administration (EIA).

Running counter to recent public and private sector analyses, mediocre results so far and complex geology have combined to cause an Alliance Bernstein (AB) analyst to question whether the Monterey Shale will live up to some of the hype surrounding its future prospects. Even with these reservations, high oil prices could push the play closer to its potential, the report conceded.

Laying out a blueprint for how small- and medium-sized businesses can take advantage of the opportunities provided within the current U.S. natural gas development boom, the Marcellus Shale Coalition (MSC) has released the second in a series of recommended practices aimed at bolstering the Marcellus Shale region’s supply chain.

Pavillion, WY — where the federal government’s testing of water led to early concerns about the use of hydraulic fracturing (fracking) in nearby natural gas wells — has begun a state-sponsored mitigation program installing cisterns for residents who have been, or potentially could be, impacted by contaminated water. To date, there is no conclusive evidence one way or the other.

Overall cash prices added a dime Monday as weather forecasts, pipeline maintenance and a strong screen combined forces to send prices sharply higher. Northeast points led the charge higher, but Southern California locations were not far behind. At the close of futures trading July had jumped 16.8 cents to $2.635 and August had risen 15.4 cents to $2.565. July crude oil fell 76 cents to $83.27/bbl.

The cash market rose on average about a nickel overall Tuesday as a late-session futures surge Monday combined with supportive weather in some parts of the country to send quotes squarely into the plus column. Futures built on Monday’s gains and the July contract Tuesday rose 3.1 cents to $2.446 and August futures added 2.9 cents to $2.496. July crude oil tacked on 31 cents to $84.29/bbl.

FERC on Tuesday issued a certificate for Tennessee Gas Pipeline’s Northeast Upgrade Project, which would expand the company’s existing 300 Line system in Pennsylvania and New Jersey to provide an additional 636,000 Dth/d of Marcellus Shale gas to Northeast markets. This comes only months after Tennessee placed into service an initial expansion and upgrade of the 300 Line.

Led by spending in North America, global upstream expenditures are set to reach a combined record of $1.23 trillion this year, according to the latest IHS Upstream Spending Report.